Thursday, November 17, 2011

Like many things in life preparation is key.When dealing with a Chapter 11 reorganization nothing is different.Be ready before the first meeting with an attorney and continue to prepare all the way through filing.

Step One:Documentation

It is very important for you to gather all documents that would not only help you get a grasp on your financial situation but that would also help your potential attorney.The below items are a good place to start gathering.The list applies to the smallest business or individual to the largest businesses.

Communication is just as important as documentation when it comes to preparing to file or even contemplating filing.You need to be very specific on what you would like to accomplish in a filing.Sometimes what you want and what is realistic do not match up and if you communicate it clearly the attorney should be able to let you know what can and cannot happen (or what usually happens).

Also make sure to ask questions, that is why the attorney is there.It is very important that you speak with a qualified Chapter 11 bankruptcy attorney.Chapter 11 bankruptcy is not like Chapter 7 or Chapter 13 so be careful to make sure Chapter 11 is something the attorney is comfortable with and has done in the past.

Once you have fully communicated what you wish to accomplish and asked all of your questions you should be ready to make a decision on whether or not Chapter 11 reorganization makes sense.Should you chose to move forward the next step is getting the papers ready and filing the Chapter 11.

Tuesday, November 1, 2011

The District Court for the Middle District of Florida Tampa Division has ruled on the absolute priority rule and its application to individual chapter 11 cases. The Honorable Judge Susan C. Bucklew wrote in SPCP Gourp, LLC v. James John Biggins 2011 U.S. Dist. LEXIS 107728 that the absolute priority rule did not apply in individual chapter 11 cases. The Judge stated the language is clear that the absolute priority rule was to be removed during the amendments to the code. The Judge did put in a footnote regarding In re Gelin stating that Gelin had different facts from the case before her. However that does not take away from the ruling that the APR does not apply to individual chapter 11 cases. This is the first district court case in Florida to deal with the issue. While it may not be binding in your particular district it sure is heavily persuasive. Finally a counter for the much discussed In re Gelin (and at a higher level court)!